Sunday, May 31, 2009

Moving to Prime Time

The loan type with the biggest jump in defaults are the prime loans. As a percentage of total loans the default rate is still lower but since most loans are prime that translates into a lot of defaults.

The best line from this article: "Freddie Mac estimates that 40% of the loans they have in foreclosure are on vacant homes. The borrowers don’t want a modification. Home prices have fallen so far that they will not see any equity for decades. So why pay?

1 comment:

Carl said...

at some point, the eye candy on CNBC are just going to have to come out say "A majority of the U.S. hosuing market is okay, however CA, AZ, NV, and FL... You're still screwed!!!"